Roo's All-In Giveaway, $300,000 in Prizes
1.2 k views

Understanding Altseason and What to Expect in 2023

Cryptocurrency came into existence in 2009. Since its invention, the market has grown significantly; today, there are over 20000 cryptocurrencies. It has become a competitive market with key industry players and competitors. Further, the industry has developed different terms and phenomena, such as ‘Altseason’ and ‘Altcoins,’ which cryptocurrency experts and traders explain.

Bitcoin was the first and most significant cryptocurrency. However, several other cryptocurrencies have come up, including Monero, Ethereum, XRP, and Dash, which are all alternative coins. These alternatives to Bitcoin are generally referred to as altcoins. Altseason means altcoin season when these alternative coins perform better than BTC.

How Does an AltseThis be because then Happen?

The cryptocurrency market share divides between bitcoin and altcoins, with the BTC taking up the larger market share. This is because the market operates based on the principle of demand and supply. Therefore, an increase in the demand for bitcoin results in an increase in BTC prices, and the effect is that the price of altcoins decreases. As a result, more people are investing in bitcoin against altcoins or fiat money, such as Pounds, Euros, and Dollars.

On the contrary, a decrease in the demand for bitcoin results in a price decline, and the effect is that most of the altcoins’ prices would rise. At this time, more people are investing in altcoins against BTC and fiat money. The period when the price of altcoins is increasing at the expense of the bitcoin is the altseason.

After the growth of bitcoin and the crypto market’s capitalization, several other cryptocurrencies emerged and became competitors to BTC. The bitcoin price was quite high, and investors saw the potential in some cheap altcoins growing to the BTC ranks.

Consequently, BTC and altcoins became the players in the cryptocurrency market share, with bitcoin dominating. As such, any decrease in bitcoin’s market share means an increase in altcoins’ market share, which causes an altseason to occur.

Benefits of Altseason to Investors

During the altseason, people develop a positive view of the altcoins as their prices increase. Investors increase their stack in altcoins at the BTC expense, creating a demand for more altcoins. The money invested in bitcoin flows into various altcoins, creating a domino effect. The price increase occurs quickly, and it can drop unpredictably.

As such, investors can take advantage of the altseason by investing wisely in altcoins during altseason since their price is upward. However, they must be keen to resell the altcoins again before the altseason ends to make a profit. It is like black Friday in the crypto world, and traders can make the most of their earnings.

How to Differentiate Altseason from a Bubble

A bubble results when new players join the market, with the effect that there is an unprecedented reduction in supply. The existing miners sell their cryptocurrency at higher prices to maintain their profits. The action then attracts a wave of new investors into the cryptocurrency market. Bubbles are quite challenging to spot and can only be seen as or when they pop up. However, they can also burst as fast as they pop, and investors who do not sell before the burst can be left with losses.

Altseason, on the other hand, can be spotted by looking at bitcoin’s dominance. If the percentage of capital market share and price of BTC begins to fall, this indicates the beginning of altseason since altcoins are gaining in value.

History of the Past Altseasons

The most remarkable altseason happened in December 2021 after the extreme rise in BTC price. From September 2020 to November 2021, the bitcoin price rose to over $69000. It was trading at under $10,000 in September and hit $69,000 towards the end of the year. Many people heard about Bitcoin or crypto for the first time during this bull market, even though crypto had been around since 2009.

People began viewing the small-priced altcoins as potential cryptocurrencies that would rise to the ranks of bitcoin. As a result, the demand for altcoins began increasing, and there was a massive entry of new investors into the cryptocurrency capital market.

Almost all altcoins experienced an exponential price increase in 2021, with some experiencing a 4000% rise.

Can We Expect An Altseason in 2023?

It is difficult to predict when an altseason will occur since multiple factors can result in its occurrence. However, some of them can serve as indicators. Market dominance is the best indicator, so traders only have to keep an eye on the BTC’s market dominance to detect the possible start of the altseason.

Based on historical data, a fall in bitcoin dominance to below the 40% level results in exponential gains in altcoins. Therefore, a similar fall in BTC dominance would most probably come with a rhyming effect, and the next altseason could be about to happen.


Bitcoin live price
price change

The cryptocurrency market is highly volatile, and you can never be sure of making a profit. The trend is mostly some long periods of lows and short highs. As such, it is always advisable for you to invest what you can afford to lose. The altseason may or may not come today or in the next few weeks. However, it is good to stay prepared for when it happens by diversifying your crypto portfolio with several altcoins. 

Stay up to date with our latest articles

More posts

Top 5 Crypto Gaming Tokens to Buy for the Next Bull Run

Crypto gaming is one of the fastest-developing sectors of the blockchain industry. In 2023, it is estimated at $7.89 billion and is forecasted to reach over $300 billion by 2030. Some see it as the next ship to onboard for lucrative long-term investments. And after a closer look at it, we can easily understand why. The strength of the crypto gaming market lies at the crossroads of several technological advances, including blockchain, cryptocurrencies, and the Metaverse. Including new economic models,…

A Guide to the Impact of US Fed’s Interest Rates on Crypto

The US Federal Reserve's interest rate is one of the world's most influential economic indicators. These rates profoundly affect global markets and investments.  But what impact does this have on cryptocurrencies? Today, we’ll explore how Fed interest rate changes affect crypto prices and why traders need to pay attention to them. We will also discuss how quickly these rates are increasing and what this means for cryptocurrency investors.  Observing the connection between US Fed rates and crypto assets allows you…

Unveiling the ERC-4337 Account Abstraction Standard – What You Should Know

The Ethereum blockchain is always changing and adding new features to make it easier to use. One of the latest developments is the introduction of ERC-4337. This account abstraction standard promises to revolutionize how users interact with Ethereum. This guide will tell you about ERC-4337. We'll explain what it is, how it works, and the good and bad things about it. We'll also talk about why you should use this new standard for smart contracts. By the end of this…

How to Evaluate a Roadmap Before Investing in a Crypto Project

Investing in a cryptocurrency project can be a risky business. After all, the crypto market is volatile, and projects can fail due to a lack of planning or poor execution. That's why it's important to understand how to evaluate a crypto project's roadmap before investing your money. By looking at the details of a project's roadmap, you can get an idea of its direction. Moreover, you’ll manage to understand whether or not it has to stay in business.  In this…

How Can Crypto Projects Use Telegram and Discord to Grow

Crypto projects have an excellent opportunity to reach and engage with their audiences using two popular messaging platforms: Telegram and Discord. How can they make the most of these channels? Today, we'll explore the differences between Telegram and Discord and show you a few successful examples on both platforms. Furthermore, we'll provide strategies for growing your crypto community. We will conclude this guide with tips for engaging your audience, combining the strengths of both platforms. Why Telegram and Discord are…

The Role of a Valid Go-To-Market Strategy in a Crypto Project Success

In the rapidly evolving world of cryptocurrency, a good go-to-market strategy is essential for any project to achieve success. Unfortunately, it's not enough to create an innovative product. You must also know how to reach your target market and effectively promote it to gain traction.  With careful planning and execution, you can develop an effective launch plan to maximize your chances of success in crypto. This article will discuss the importance of a go-to-market strategy and common mistakes when developing…

How Can a Team Create Market Traction on Its Crypto Project?

Market traction is a must-have if you want to create real, lasting success with your crypto project. But how do you ensure your team achieves the traction needed to drive meaningful growth?  This guide will explore some strategic methods for building and maintaining momentum in the crypto sector. Never underestimate the power of effective market traction – it could be the key to unlocking your project's potential. Why You Need Market Traction in the Crypto Sector The success of any…

Which Features Should a Successful Crypto Team Possess?

Creating a successful crypto team becomes imperative to succeed in this industry. This is particularly true as more people come together and launch their digital currencies or tokens. The right team and set of skills can make a huge difference in the overall success of your crypto project. This guide will explore features a successful crypto team should possess to ensure long-term success. Is There an Ideal Profile for a Crypto Team? A successful crypto team should be composed of…

What You Need to Know Before Investing in a Crypto Project with Anonymous Team

Investing in a cryptocurrency project can be an exciting way to grow your wealth, but it can also be risky. Investing in a crypto project with an anonymous team adds complexity and risks. The Phenomenon of Anonymous Crypto Teams If you explore the Internet for financial ideas, you've probably already encountered anonymous crypto teams. Some cryptocurrency teams that stay anonymous are growing successful. Some anonymous crypto teams have succeeded, despite traditional investors' reluctance toward them. For example, to this day,…

The Buyback and Burn Practice Explained

In a constantly evolving and growing crypto market, it is difficult for investors to know where to put their money. One popular investment strategy in the crypto space is buying tokens of teams that conduct a buyback and burn program.  This guide will explore what a buyback and burn practice is, how it works, and its benefits and risks. What Is a Crypto Buyback and Burn Practice A crypto buyback and burn practice happens when a company buys back its…